According to a recent research article, about $4 billion worth of cryptocurrencies were stolen through security breaches in 2019. Mostly, these hacks targeted exchanges that hold a significant amount of cryptos in hot wallets – which are vulnerable to attacks thanks to their online status. And hackers are continually innovating new ways of leveraging loopholes, and even outdoing the current cybersecurity measures used by most crypto-asset holding services.
In light of this, it would be understandable if you worried about entrusting your Bitcoins to any third party, regardless of the industry.
While there is yet to be a major heist targeted at Bitcoin casinos, it doesn’t mean that your wagers are entirely safe. In this article, we look into how you can protect your Bitcoin holdings when interacting with any Bitcoin casino as well as how to choose legitimate Bitcoin casinos.
Choosing a Legitimate Bitcoin Casino
Although nothing can guarantee you that you’ll win every bet you place, it helps to choose a trustworthy Bitcoin casino. So, keep the following considerations in mind for your safety while playing in an online Bitcoin casino:
Ideally, online casinos run on self-developed software known as a provably fair algorithm to manage games and even act as a dealer in a pool of players. But, you shouldn’t take their word for it.
As such, any online bitcoin casino worth its salt will go the extra mile to win users’ trust by publishing how their software algorithm works. This way, users can vet and verify that each outcome is randomly selected without interference from third-parties.
License and Registration
Similar to any other business, an online casino must be licensed and registered with a governing body that oversees its operations. However, there are a few discrepancies as far as the regulation of bitcoin casinos is concerned. This is because some countries have completely banned the use of Bitcoin or other cryptocurrencies.
Nonetheless, a good number of bitcoin casinos have certifications showing that they have passed the strict evaluations of Gaming Laboratories International (GLI). GLI is a game licensing body committed to ensuring a fair online gaming environment. What sets this regulator apart from the rest is that its testing and inspection are carried out independently, based on the stringent standards set by the licensing body itself.
Funding and Withdrawal Terms
Most bitcoin casinos accept cryptocurrency deposits, but withdrawals are made through your bank or online wallets such as PayPal. In such a case, your banking details can be intercepted by an authorized party, if the casino has put in place privacy and security measures.
The industry-standard technology for establishing a secure connection is the Secure Sockets Layer (SSL). A Bitcoin casino with this technology in place ensures that you make private and anonymous deposits and withdrawals using your credit card or bank, without an interception. This security protocol also protects the entire site from cybersecurity threats – safeguarding your wagers while also ensuring the site works perfectly.
Also, pay attention to the withdrawal terms. Some casinos impose terms that prompt users to extend their playtime before they can cash out. Extended playtime often lowers your chances of winning. So, be wary of unfair withdrawal conditions.
Your Wallet of Choice
Unbeknownst to many, the type of Bitcoin wallet you use to fund your casino account determines your safety when using the platform.
There are two main types of crypto wallets, hot and cold wallets. The hot wallets are considered to be less safe than their cold counterparts since they are constantly connected to the internet.
Cold wallets are likened to a saving account, in the sense that they can be used to store cryptos for a long time with minimal interference. Every time you want to spend the stored digital assets, you’ll have to verify your identity by clicking on a button on the hardware wallet.
Even though you are provided with a hot wallet upon setting up your bitcoin casino account, it’s best that you deposit only a small amount of Bitcoins in this wallet and keep the rest in a cold wallet.
Responsive Customer Support
It gives you peace of mind knowing that you can rely on competent client service representatives in case of delayed payouts, technical glitches, or any other issues. Moreover, considering the anonymity of Bitcoin casinos, customer support is the only physical link you have with the casino operators.
A casino with responsive customer support shows the commitment of the operators to ensure that the platform works efficiently and that the users’ interests are a priority.
Check Out Reviews
Genuine reviews from previous and current users are the surest way of ascertaining whether a casino is safe or not.
A simple Google search of the casino of your choice is a good place to start. But you might consider going an extra step to contact various users of the platform, especially if they have no problem sharing their experience with the casino. Usually, if a lot of users have a problem with a casino, it’s better to avoid it than risking. Still, if a casino has fewer reviews, you should probably play safe by risking smaller amounts of Bitcoins or avoiding it altogether.
Most importantly, keep an eye on phony bitcoin casinos, as listed on Casino.org, the world’s largest independent online gaming authority. Currently, there are a few blacklisted casinos on the site deemed to be unsafe due to their unsavoury business practices.
Bitcoin has revolutionized the online gambling industry thanks to its underlying blockchain protocol. Transactions are faster and more affordable compared to traditional casinos since there are no third-parties involved in the cash-out process. More so, due to the cryptographic nature of cryptocurrencies, Bitcoin casinos are more secure than those using fiat currencies.
Yet, the same high level of security and privacy offered by Bitcoin casinos can sometimes be detrimental to users’ safety, considering that the transactions are anonymous and irreversible. For this reason, choosing a reputable Bitcoin casino is paramount in safeguarding your wagers from unfair play or game manipulation.
Even when using a trusted casino, it is recommended that you refrain from storing your Bitcoin holdings in the provided wallet for a long time. Ideally, you should withdraw winnings straight away and store them in your private wallet.